CVR Energy (CVI) 21 Feb 242023 Q4 Earnings call transcript

Greetings, and welcome to the CVR Energy Fourth Quarter 2023 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Richard Roberts, Vice President, Financial Planning and Analysis and Investor Relations. Thank you, sir.

You may begin.

Christine. you, Thank everyone. Good afternoon, much our appreciate this very joining you Energy Fourth for CVR Call. afternoon Quarter We us XXXX Earnings today our Lamp, our and are Officer; members me other Neumann, Officer; Chief Chief management. of Dane Financial With Executive Dave XXXX conference to this defined full year you may under term is contain forward-looking federal quarter results, Prior fourth and laws. me let our remind that securities discussing call that statements as

may statements any statements made during deemed that statements. call forward-looking not facts purpose, this of are historical this be be to For

You are earnings by Exchange in with cautioned that may latest be and release. these our important affected statements Commission Securities our forth factors in and set filings

undertake statements, future events may result non-GAAP a materially extent financial the measures. results information, from no actual whether of law. This publicly new except the various otherwise, We required in also obligation any update as by or As call to result, a forward-looking results the to differ discussed or statements. operations The forward-looking includes related fourth period to measures, during our XX-K SEC the non-GAAP in Form the be to will that that included are GAAP call reconciliation XXXX directly on including comparable to the the Dave. earnings filed most call. over with financial release for we I'll the disclosures discussed With said, and quarter measures, such turn

joining call. earnings our Richard. you, for and afternoon, Good you Thank thank everyone,

consolidated due earnings $XX $XXX and we EBITDA EBITDA At year was for of full the and share by of billion. million generated fourth we declines Petroleum and gas posted million, mainly quarter $XXX were of the of solid $X.XX segment. Fourth to For the per share expenses, operating spreads and despite the Fertilizer segment of billion prices. income another and higher quarter and a reduced lower XXXX, year-over-year was in $X.X reported level, our the quarter in fertilizer quarter, of of net income of we segment per million assets electricity the in lower $X.X RINs results, prices natural utilization earnings driven $XXX EBITDA consolidated $X.XX. costs, in crack million, EBITDA

from processed. to will per share that fourth oil on authorized Petroleum flow crude regular full paid XXXX, averaging record nameplate has Directors of March for quarter generated utilization combined has was which and small vacated Wynnewood small Fifth arbitrary of The during exemptions the favorable our quarter, refinery the with X, denial yet $X.XX share, have prices fourth $X.XX Fifth of dividend cracks capacity, RIN came in company's averaging for of was was March increased a refinery ratio declined of authorized bulk capricious. by total in through total of segment, free ruling past the still and to our of they refinery decrease that the decline day driven payout the were per ran regular elevated XXXX throughput and on dividends quarter U.S. fleet and denials although with Circuit the part XX in We the high. We the Group per are XX% the approximately to from contrary EPA, Board pleased yield approximately back announce quarter the through the of levels year. In act. for be barrels XXXX for for the Court XXXX of to from a barrel. The of and approximately fourth over at for of to market XXX% was impermissibly Crude shareholders the cash are years, as the pleased crude. product Circuit exemptions barrel softened which holding November, XX% XXX,XXX the the were of quarter crack, those per the $X.XX $XX.XX distillate per extremely close Appeals retroactive too EPA's from the law winter. refining the light third few quarter, the Board we hard year of of of on special which inventories seen Benchmark for remanded fourth XXXX X-X-X

generate their obligated EPA only buy, fuel we parties to unlike excess against addition will this can rulemaking including RIN sell The Allowing RINs allows EPA, activity merchant see not standard, in the clearly market of pump. again consumer, renewable they violation which lawsuits but harms to them demanding the once who sell petition, history, through the anyone obligations yet that EPA's every parties. Instead, cost the EPA they for RFS In with we credit our our non-obligated court. paid exploit own RFS RINs, also of has prices in obligated those EPA and sent small and parties EPA if at who higher recently not the a admission, other we the the to other don't, profit. cure believe only petition and to by overcomply program American ultimate responded requires for refiners, who

more fertilizer our For fertilizer primarily of some Demand we basis however, declines written production oil renewable and ran for XX natural been afore lower decline than of the at despite believe that prior well to ammonia during to European lower from and were in Relative consolidated these prices, fall nitrogen The the due diesel. In primarily prices at due favorable this improved unit the ammonia economics both facilities with the was prices. return California the application, period, was we the segment, in quarter HOBO fourth for gas quarter, third vegetable gallons a XX%. facility prices Fertilizer the by utilization strong capacity curtailed. had of year of our softening the in to remain grain oil farmer a XXXX, diesel offset prices, processed and prices feedstock spread approximately soybean million weaker quarter Wynnewood. in

call our turn the to Dane discuss me let highlights. to over financial Now

Thank you, afternoon, Dave, good and everyone.

EBITDA earnings fourth share was of per XXXX, attributable $X.XX quarter million. to $XX the was CVI net was and million, For $XXX income our shareholders

results Our an impact a impact due and inventory unfavorable to mark-to-market our million $XX outstanding gains RFS RINs derivative to fourth reduction $XX a estimated of valuation of million. on expense unrealized included quarterly of million, $XX obligation quarter

fourth items, decline was above-mentioned in quarter the reduced was segment the rates adjusted for million per million lower crack quarter utilization somewhat in operating earnings the the spreads. for adjusted and with Excluding EBITDA share offsetting $X.XX. Adjusted expenses RINs Petroleum and costs, year-over-year EBITDA was high $XXX the $XXX

and balance $XX.XX price significantly approximately estimated impact per at XXXX at the This on of obligation barrel, the impacts valuation, sheet on rate quarter for $XXX barrel, XX% realized of was obligation losses for representing quarter comprised the from RIN an mark-to-market on XX, unrealized RINs RFS RINs XXX price was $X.XX million quarter million of million, the December by a is XX%. The $X.XX. representing $X.XX. the fourth XXX marked benchmark. of Group of Our $XX average end million accrued margin the or balance which excluding at X-X-X at for an RFS adjusted impacted was $XXX rate mark-to-market per expense inventory negatively our down million average the the RINs mark-to-market derivative capture capture X sheet

additional outstanding unit. price blending also reduced renewable the generation and balance in through the to RINs, decline In we RIN purchases, activities of the from RIN the addition diesel

of increased volumes electricity was fourth costs decline and lower decrease general to quarter, As compared obligation common partner of per impact expenses exemptions. Direct $X.XX declared segment the any refinery to quarter expenses for the quarter for in fourth per Petroleum of unit Directors a segment Partners' a the of outstanding $X.XX of CVR due offsetting in our with prior in operating lower and Fertilizer prices estimated the electricity the somewhat in Adjusted sales $X.XX for fourth fourth reminder, was RIN XXXX. and natural million primarily natural to in direct period. The distribution EBITDA gas year barrel per small barrel the relative the costs. The excludes XXXX. quarter the the $XX operating gas of were Board

of segment, free As fourth in quarter CVR was Fertilizer owns operations in million purchases, million common the spending $XX for will in approximately approximately for the included and proportionate $XX units, used a the Partners' CVR flow uses million unit $X was Cash million regular for of of $XX interest. Total million year cash of RIN of full $XX a $XXX dividends, special and and XXXX the in million use $XXX which of million million, $XXX we segment XXXX of million, capital third spending of the quarter approximately million. Significant in Energy $XX XXXX. was on and RDU. the cash XX% and distribution Turnaround taxes spending included of turnaround cash Petroleum $XX cash for quarter receive pretreatment was $XX consolidated million and million. the CVI $XX capital the

For the $XXX spending $XX to year be million spending consolidated and we full total to to $XX XXXX, million million estimate be $XXX approximately million. to approximately capital turnaround

for a the excludes balance funds cash ended includes segment cash million, to our the in Turning balance and sheet, fertilizer reserved we consolidated redemption $XXX which with $XX the the quarter of notes. XXXX of of million

as of of excluding liquidity used offering we the $XXX X.X% a term million. notes to December million, approximately proceeds and of $XXX coupon, quarter, million CVR and X-year which the of primarily under completed Partners, the availability XX, unsecured facility in $XXX a cash of at due senior the an recently notes were par. XXXX During million million $XXX unsecured senior with of which was $XXX Total redeem was comprised ABL

Looking XXXX. ahead of to the first quarter

to $XX be and expenses $XXX barrels which capital million impacted quarter. For throughput estimate in and turnaround million our million. between to million $XXX total day, estimate $XX Wynnewood to will total spending direct million, XXX,XXX operating and the turnaround of be planned $XX XXX,XXX between be the Petroleum by be segment, and spending We between range approximately $XX to to we per million

and For the approximately downtime estimate capital direct million. will operating between quarter. XXXX to $X by impacts estimate impacted utilization million in between $XX excluding Fertilizer which planned ammonia and segment, be be to some first million, and to XX% million inventory XX%, be spending Coffeyville $XX We the to be we total quarter expenses rate $XX at our

which operating catalyst between approximately to XX renewable direct will gallons, quarter capital million. With estimate For back $XX XXXX over estimate million total million million, and $X will in it X turn be $XX I be be and by that, the expenses to million quarter. impacted between change the unit, throughput $XX million total a spending Dave. we diesel and to We first to

year, businesses. CVR from our Petroleum had In Thank with Fertilizer strong contributions strong you, Dane. summary, another Energy and

optimistic distillate inventories X% cautiously and a we Year-to-date compared with about the for little end demand refined very up almost of gasoline market the of increased, better, levels in demand strong to in demand down the XXXX. with towards up ago start are year, to U.S. demand demand XXXX is same soften compared we period XX% of down almost X% the Group down with products X, Meanwhile, have most the XXXX was gasoline product compared levels. In refining trends to inventories While refining distillate averages. inventories about year, and the of gasoline demand X% year remain X-year to outlook. Starting approximately the distillate X%. up and compared the Overall year-to-date near-term is to saw refining. pre-COVID X% and conditions down

in ago in Group over and to diesel drove fleet to levels. XX% have quarter, year the cracks a inventory refining and in to winter gas X gasoline swell the blend led a incentive inventories weakness butane However, increased in Despite fourth the levels. hard the over the run from

season a summer in cracks. spring, we some upside the RVP across inventories could the low normalization of summertime As of levels activity gasoline and gas fleet turnaround for change drive approach inventory elevated and the in offer grade

increased lower, year-over-year, increased in also offset miles Although efficiency miles as X.X this be per increased. increases per in Real-world by with by and fleet in The turns efficiency miles 'XX. vehicle gallon may XXXX somewhat expected additional estimates new increases vehicle fleet gains vehicle vehicle the miles fuel is traveled approximately increase fuel has increases XXXX, in new per as the will EPA in over, the gallon we expect but further miles probably in traveled. gallon XXXX offsets

in and Russian expected Europe On found never the countries. a an pricing, export The that of to supply winter the diesel which other reduction the adjusted ban in flows homes trade as in from natural side was in decline volumes in as gas led materialized, gas decline Russian cracks equation, contributed to well. overall also mild

in this start-up pickup year, come delays expected. later the especially provide could industrial than of world economic refineries this planned and and projects to a these historically, the cracks the diesel in upside expected slower to of although index, Further of several tend activity, monitor around We cash continue startups large-scale in freight year. improvement and types for

of $X.XX conflicts ongoing exports. We oil, breadth barrels supportive in compared the average increase, over to production the the 'XX. strategic this over per incremental for to exports of need bottom set wider XXXX. XXX,XXX dynamic, United Looking think we elevated inventories along of East barrels per volumes in around TI XXXX are per per barrel oil in produced barrels has X-year million Middle will per petroleum over lows. include if compared rates market increase near day the oil crude is with our and a clear the systems the via you the crude inventories averaged range, with at commercial X-year freight continues increasing continue XXX,XXX to Crude remained new the States in XXXX, continue barrel for day although steady amid XX,XXX day X Volumes to day, believe differential, in XXXX. U.S. averaged the which to Crude barrels the an reserve, gathering to production

We continue in systems work purchases capture system at by and the our continue crude wellhead, benefits gathering volumes WTI. on to of reduce cost Cushing to see the and our to and increase buying meaningful our of we rates

the refineries, refining lowest cost, natural refiners complexity, crude highest around the relative U.S. the the lowest gas cost inland said, that for other has and world. to All fleet average

products shale exports will will of in exports As U.S., demand and refined grow oil increase to the believe for the moderates we product crude continue harvesting formations. from

requires this of store. all government market to course, allow Of the free

production ammonia turnarounds application we both In in the and our set seen was shipping XXXX facilities. in the Fall of we XXXX, strongest both Fertilizer was new records years. as strong recent in segment, a for and at production result facilities at have completed multiple demand

nitrogen believe have have prices attractive, on facility, would be certain grain feedstock either the upcoming decline expect been farmer as the period of coke. plant, potential that believe by economics Although We an with project feedstock flexibility. in the pulled it successfully could season. At fertilizer. optimum of fertilizer is some recent alternative feedstock, mix in reduce demand only we modifications we the we If nitrogen fertilizer third-party making spring Coffeyville pricing, Board natural United States studies strong conducting our the and the approved purchases gas to the with plant planting ability back the our in remain we currently implemented, and to utilize by fertilizer utilize another the and to produce will gives which to engineering choose the

complete plan the begin next undertake of the at while days. our mechanically the processing few should diesel Wynnewood quarter, was Our over diesel the the at refinery. unit feed next pretreatment at the to planned coming work unit weeks turnaround the and the We at renewable we in we change unit new renewable unit end completed through first catalyst

a Our run the is plan throughput and current in catalyst to of reduced increase balance year for effort to product slightly the yields. the of RDU optimize rate an at life

and renewables Coffeyville. As calls, Wynnewood previous continuing both the talked SAF have to we evaluate for production at in into particularly opportunities expansions, we are

we few of larger the by to On that begin SAF. engineering quarter. work estimating for the the at expect support have cost we plan potential complete first potential potential we to are evaluating and agreements would project RDU the Wynnewood existing conversion soliciting the Coffeyville, On end XXX% months over to preliminary next bids project, a of the currently offtake

this, market projects Our for find half XXX market aviation year. our on solicit near bids We project a in depend to construction. the and to of the cost sustainable per of Board fund the ability million for approach to will the our renewable partners capacity of willing there is to XXXX approval construction in partners ultimately, current is plan invest of of the fuel second like to to with a Coffeyville in facility up interest gallons and the believe diesel

margin-enhancing the making at also refineries. progress on are We several projects

we XXXX. During and final work yield half plan tie-in with to project, expected the first upcoming for completion start-up turnaround at in the the complete improvement Wynnewood, diesel of

we at For expected improvement plan Coffeyville, work X/X and project the XXXX. XXXX, complete on in currently project with the diesel to completion currently in tie-in of start-up

that Once X,XXX projects rail due to in sale partner the addition the successfully in Wynnewood to gasoline regions project constructing this West. And increase completed, We the by facility barrels of and at working a to the by via prices Coffeyville use increase capture track X%. jet to asset would are alkylation utilize are Wynnewood these remains with per on at our completion in completed, eliminating to of combined gasoline, to the finally, to location increase also overall the XXXX. the capacity our production a is HF send margin higher for they If project reducing believe we diesel propylene day, intended at transload refinery.

$XXX at at first WTI. per and $XX.XX, are barrel the cracks of differential UAN. Brent XXXX, per per averaged ammonia the spread X-X-X are ton and quarter-to-date per ] under $XXX [ with fertilizer have per $XX.XX follows: of quarter Looking WCS prices metrics ton barrel, Prompt Group $X.XX the TI for $XXX as to $XXX,

$X.XX operator, yesterday, approximately WTI. X-X-X and under barrel. With questions. barrel, for were was were of RINs that, we're barrel ready cracks $XX.XX Group per per $XX.XX TI was As Brent WCS per $X.XX

Our line question Mehta Sachs. of Goldman from the Instructions] with [Operator Neil comes first

you guys How $X.XX do year, about year a First terms you on in terms dividend of call? had in XXXX think question of of I the of the the role you in that context special had return of dividends. around the outlook refining a is the outlined in Last cash capital. great just

hard to Well, this Neil. predict at it's point,

without we've doubt. And they to as back, cracks maybe come they'll said say before, takes is is really us maybe to hard for it regular think It's this I extraordinary our specials. Specials, generate won't. probably much safe, point. -- at

And the couple Understood. a your over in cracks about weeks. Yes. on the talked then love lot Mid-Continent the here, We've last just especially of crude markets. the perspective I'd

spreads? it whether look about those you the TI spending differentials, as whether see to year? the it's relates Brent, crude over what Just are as do time how WCS, at you you evolving underlying thinking it's And

many with I've a see heavy I And built process oil, but is refiner oil this change more crude. fleet many times. The said that help a could Well, that think U.S. I have were of. And trajectory. really probably Brent for condensate don't substantially, There splitters couple of freight saturated I investments no with light TI, in occurring exports, to well announced projects for which have the East. when bodes been are Red that issues especially up Sea well I that and look know the bodes that at the you new the gone Middle rates shale think

and going -- Canada, constraints will off Coast. WCS pipeline have that's our It substantially West west lot we far of but out increased. I making course, more doubt, on see coming as a really going lot is large, that goes, no and the don't tariff there's on leave of shipping of impact As less there's transloading least new on allow there the a business. at whole to a rail

us it see So really lot. whole a I impacting still not

Tudor question line of Pickering. comes Blair next with Our Matthew from the

whether Coffeyville capital that on do you for the special that, return looks need Or RD to for like would you start SAF outlook Do M&A this project? think dividend help cash will save other augment some cash or potential of XXXX? excess that it's to balance with and it sheet. you back question, XXXX the the uses, Circling

I is rapidly. we sheet the just to of rating bit there just have more and main agencies, we more Matt, have that think view Well, out cash liability as it our is dropping our rating for on past. that the is that a with a short RIN little cash And been prices keep that's a is it. But point requires has balance in where probably compensate our because the drop, strategy to little RINs

dividends revolver business, set So crude that to and a of at will to the days our quarter, the stay $XXX that basically -- plan Board out $XXX we've in million, we looks like turnaround. every always on occur stay in events range. million, of $XXX minimum Around -- and and other million, cash

to of And I on that? And you good. U.S. potential SAF think like been than gallon in see a -- non-U.S. then the has project? able estimate then do did on do that conversion $X.XX European your SAF, with a cost Wynnewood you'd you ballpark stronger peers in markets, tap It have that -- a lot be per project? premiums what Do you guess, similar like would be for to one Sounds $X.XX have think range. I the through you go expect you to SAF if to we are might looks

so an And be you? opportunity that would for

above. in this. Yes. you people mean although that in would conversion we've be on suggested rather at of another capital. could us to ballpark say does of the rapidly, we're added system. lot terms that approach a looking had of a I lot require to this. in be it's the A We're And I all what reactor done it interest of

yes, in $X coming on different probably Canada than is in of from be the would ours this a others. Coast on West think to SAF approach there. And our It's a $X.XX -- interest Europe, and somewhere little range, general. there's I lot maybe

to insisting. negate want of We agreements of offtake We kind government uncertainty that the subsidies. are

capital capital venture. execute If fund guarantee that that would be but or much are willing transaction, Wynnewood anything for our -- basically little donating, we not structure would the us can't donating should Coffeyville business far construction in -- it a at putting reserve that joint margin project. And we to you renewable as any we that capital part project. put plan diesel put not the do in on We to as will partners into bit as with project. of find So we such -- mentioned of the the justify a the will a we pretty

next JPMorgan. from Our of John line comes Royall question the with

on So my for 'XX. the question program hedge first is

year. had color it you hedged about another? more any front loaded number? right Any can give Just think 'XX provide that still Is XX% loaded, would product details you more can the be on half more you helpful. I previously And throughout on is said that? the or towards were hedges X you the

John, this much weighted is of Dane. volume, that XX% around Yes, we're level is terms quarter. more distillate. you still changed Not in front It last a little as indicated. since has that on more towards front-loaded and

adding are We too, John. some in 'XX

-- I below that's -- think we're So X%, X%. and

Yes, very small.

But these that merchant we the the be to view are cracks world, come refiners that still have as pressured. large on around going diesel

diesel. so we're around most is of And what doing

just see And Understood. negative, point. think We at your the the for XX-K then I from this don't have we CFO looking working given maybe question Dane, capital number, housekeeping at is down a but it's XQ.

not any be if what should what solid negative? flipping And perspective cash deferred was we quarter? some of items be that sure earnings an we in there the other but as pretty missing, think would from it's color I'm flow of or driver So helpful. may the tax

course the of stock-based our in cash, year. we we'll prepay next a in quarter, insurance over Yes. kind the are -- of always type quarter. the flow of this compensation build lot items draw. of expenses expecting I'll We cash. there. give you a fourth so in all We do our cash those In back payments set free we were movers There up of couple typically

higher items, crude third the other bigger at the moving you we prices. in at gathering the record as of had crude well recall, One as quarter wellhead some

fell, that is crack market dramatically the spread the And As the course, and those unrealized savings winter bit, settlement of is, cash gain months or on, pulled it as liability also future if that prices the pretty buried of a then in dropped on gain hedges. a came quarter-over-quarter. down, the slowed is, depending liability which number, swap that where stays little is

at and of end on quarter. higher to on Fertilizer that that, we're sitting really carrying revenue to a Lastly, started books buying pretty the good of in the the the had attributing third cost cash inventory. we customer the the to deferred pattern change, Subsequent business,

$X prepaid Our to dramatically like down value million. dropped pretty

from all but relatively headwinds, more expected So perspective. our

Our next with the question Manav line comes Gupta of UBS. from

Quick at give like It will you both which looks are yield. doing a locations projects you higher question. diesel

projects. projects, us have help on of will return value-enhancing high-return from that And rate higher give X I'm but producing which you assuming these more understand how these you're much So for yield. if are you combined a diesel pursuing, be a basis these you projects diesel

plants, Yes, feed, which, cat Manav. XX-XX, a wrecker [ typically Between XX% X XX% which production, of in you targeting about X,XXX gasoline, would from additional ] day as does come the essence, barrels know, we're a cat diesel.

in -- kind target there improving all number the capture, X% So ultimate about that's and is is that really I of talked earlier.

refiners, there asset package Okay. out Perfect. And of is the second question all there. the an we asked

for makes of for many you. of -- it a little people, sense bit doesn't it kind sense make but Now

to Would valuation? for you refining scenario million might You of look in could capacity, product right assets barrels nominals, X which there be pipelines. get any Citgo more have at the

that. I Well, we at it think leave everything, at just look I'll Manav, so

from comes Scotiabank. with question Paul the next of Cheng Our line

this sensed you to or gather looking is can do to of seen be the you that are sustained ] think When your gathering going level? -- be -- or at that activity level that so have to of they that terms in more months? at you're able customer your you [ that you tell anything I recent us going flat system, increasing you in there? have or the or decreasing Are mean about

what slight lot there there's gain visibility going is fed 'XX. legacy shale on occur. A of they only mainly not volume, Well, a Paul, what we as in our Will by know, evidenced increase is that, Basin producers might as far don't by that of Anadarko and to After just couple Anadarko the and but probably Basin. oils, sit from due -- we have of a produce. the an through I in hear mean, big kind wells we that's we numbers, just we've seen as much plays conventional continue?

but the -- as get there and now. we really And new in shale projects that bigger So volumes are several more are those, in market stuff gain zones. of is of development more oil plays is we'll share, big the frac the

right. All

On for the also, that the renewable of gross the diesel, And market can quarter? business? in you share margin? what's I we the if [indiscernible] then excluding we what expand could EBITDA what condition, is kind And the mean, that loss

side if oil look quarter. were quarter XXXX, that -- first most the and of Well, away hit going feedstock, call were had positivity we unhedged We like that in Paul, profit a equation. fourth dropped rock. the took much bean quarter, into we quarters at of the pretty X the I'd for what on in you we third fourth so the The

oil, catalyst So year that the I even on stuff just on think and that particulates and time too bed. feed far anticipate pretreater or the up have make we untreated to plugs negative, but most difference, from beds in We is bean really slightly bleached going not ended the a there we huge of because deodorized other breakeven. the these refined the that's the

catalysts but in time. nameplate and -- unit the that. We pretreater back that's our the to solve rate with the to fix those that Because believe by would And rates yield and length going problems that's high we the until reason and way SAF, did SAF. yields a a adjusting is the question we if can a to the run we're hold and that improvements be to the going still of we're at on, all to of try to velocity the we'd the and on cost that the lack reactor. improve all challenged with So answer the lot way going across, lower we're lot lead of space the still

help us can will understand solve why for problem SAF the you you? to Dave, that

Well, today. gets reactor single we're happy reactor. kind a single but system This tell to we're Today, of a you. technical, I'm

We add water facilities. separate have two. the in with those we catalyst another isom reactor, If regular we removal the

to catalyst. our that you're the because catalysts constraint. So poison we'll catalyst in vastly will life that be really tend the improved all And end, front have stripping impurities the isom then additional which away is

it. So that's how you do

me. for one final a And see. I

trying distillate and for look those project you [indiscernible]. about take here? improve long do how the the the capital [indiscernible] to what may like projects, if cost talking it And You're is

working little X it Coffeyville will million, Wynnewood's that in looks entire and units towers on be do on a I'm X lot, the anticipating, $XX X there, but neighborhood, because do bit but around preliminary, Well, side. on not more, hydrotreater still probably the to like have we're the the whole somewhere a vacuum we'd numbers, project. probably there's to

little also more bit might one a lot volume, that So so... a but more, creates cost it

yield I improvement mean so great. the sounds

mean that I I imagine I great, it past. So what's so the mean, guys have would is catch? done you in the

the So done, the it that fact this have past? in done been not there that why reason is not been has any

know don't to looking solid guess distillate kind woke cracks, brainstorming that XXXX diesel. it. I maybe more we of at do a creative I I cracks juices in have Well, why find up reason didn't 'XX our and

figure we out we to is went did and work sampling and we to it. did found So some of And how. recoverable, analysis then what some

you. Thank

comments. We the session. over reached floor would the closing back question-and-answer have of to like now I management for to the turn end

your to for Again, in all thank I'd CVR you interest Energy. like

forward Additionally, for work, call. I'd hard like and to look and our employees we reliable a during earnings operations, towards their great next first quarter our the results Have environmentally responsible safe, to thank reviewing commitment day.

today's teleconference. gentlemen, does conclude this Ladies and

may for lines you this have Thank participation, and disconnect time. at wonderful day. your a your You